DigitalOcean Holdings, Inc. (DOCN)

DigitalOcean is an agentic inference cloud platform that helps AI-driven and digital-native businesses build, run, and scale intelligent applications. The platform combines production-ready GPU infrastructure, a full-stack cloud, model-first inference workflows, and an agentic experience layer, with an emphasis on simplicity, scalability, approachability, and predictable pricing. It also provides 24/7 customer support to all customers at no charge, and supports a large developer community through tutorials, meetups, and events such as Hacktoberfest and Deploy.

The product portfolio spans three areas. Infrastructure-as-a-Service includes Droplet virtual machines (basic, dedicated, and premium), storage (Spaces object storage with CDN, Volumes block storage, Backups and Snapshots), and networking (Cloud Firewalls, Load Balancers, VPC, IP and DNS management, NAT Gateways). Platform and Software-as-a-Service includes Managed Hosting (from the Cloudways acquisition), Managed Databases (PostgreSQL, MySQL, MongoDB, Valkey caching, Kafka, OpenSearch), Managed Kubernetes and Container Registry, App Platform, Functions, Uptime monitoring, and a Marketplace of pre-configured applications. The AI/ML offering is DigitalOcean Gradient AI Agentic Cloud, which includes Gradient AI Infrastructure (GPU Droplets and Bare Metal GPUs from AMD and NVIDIA), the Gradient AI Platform (building-block services such as large language models, image and video models, and an Agent Development Kit), and Gradient AI Agents. The AI/ML business originated with the Paperspace acquisition.

Customers are growing technology companies across industries such as online gaming, fintech, and cybersecurity, using the platform to build and host websites, develop web and mobile applications, integrate AI into their businesses, and build AI products. The company focuses on Digital Native Enterprise customers, those spending more than $500 a month. As of December 31, 2025, there were approximately 21,000 of them, accounting for 60% of 2025 revenue. Net dollar retention was 100% in 2025, up from 98% in 2024. Citing IDC, the company estimates the worldwide IaaS and PaaS market for individuals and companies with fewer than 500 employees will grow from about $138 billion in 2025 to $251 billion in 2028. Customers are acquired mainly through a self-service model, complemented by inside sales, targeted outside sales, a dedicated AI sales team, and partnerships. Partners include Laravel, fal, AMD, and Persistent Systems.

DigitalOcean delivers its services from leased data centers across nine geographic regions, connected by a high-speed private backbone. Facilities are in the New York, San Francisco, and Atlanta areas, with new U.S. sites planned for 2026 in Memphis, Richmond, and Kansas City, and others in Australia, Canada, Germany, India, the Netherlands, Singapore, and the United Kingdom. Points of presence improve content delivery. The company works with leading hardware manufacturers on server design, builds on open source cloud-native technologies, and maintains a dedicated security team and cybersecurity risk management program. It offers some security features, such as DDoS protection, free of charge. It describes larger cloud providers as the competitors whose offerings do not fully meet its customers' needs.